US Dollar struggling for direction near 99.50
|The greenback – gauged by the US Dollar Index – remains under pressure so far this week, currently looking to gather some traction in the mid-99.00s.
US Dollar attention to US politics
The index has practically retraced the February-March rally, so far losing ground for the third straight week while navigating levels last seen in early February and closer to YTD lows in the vicinity of 99.20.
USD weakness has been picking up pace since the Fed’s dovish hike last week, accelerating the rejection from tops near 102.30 to the current 99.40 area, where it seems to have found some support.
USD-supportive Fedspeak Tuesday and Wednesday did nothing to curb the bearish mood around the buck, keeping US yields depressed and capping potential bullish attempts.
Today’s salient event will be the voting of the American Health Care Act. The failure to pass the bill could undermine the timing of the implementation of Trump’s fiscal plans and could hurt the buck further.
In addition, the usual weekly report on the US labour market is due along with New Home Sales.
US Dollar relevant levels
The index is gaining 0.01% at 99.49 facing the next up barrier at 99.85 (78.6% Fibo of the February-March up move) ahead of 100.27 (high Mar.20) and then 100.84 (55-day sma). On the slip side, a breakdown of 99.46 (low Mar.21) would aim for 99.19 (2017 low Feb.2) and finally 96.94 (low Nov.4 2016).
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